Mitt Romney, Bain Capital Defrauded U.S. Government of $25,000,000
Perhaps the most emphasized argument in favor of Mitt Romney is his business experience, mostly regarding his tenure at Bain Capital. His presidential campaign attempts to present him to voters as the man to tackle the nation’s economic problems because of his ‘wealth’ of economic savvy.
Let’s take a moment to reflect on just one of the business dealings that made Romney rich(er) and in turn molded him into the one candidate, as he claims, that can fix our countries economic woes.
According to Forbes:
In 1989, Bain Capital purchased controlling interest in Damon Corp., a medical testing company located in Needham, Massachusetts.
During the time that Bain held its ownership of the company, Mitt Romney personally sat on the Board of Directors. And during that same period, Damon Corp. was busy submitting fraudulent reimbursement claims to Medicare to the tune of millions of dollars charged for unnecessary blood tests.
According to federal government prosecutors, Damon was misleading physicians into ordering unnecessary blood tests, assuring the doctors that the testing would be covered by Medicare.
By the time Damon Corp. pleaded guilty to defrauding the United States Government of $25 million—and paid a total of $119 million in what was, at that time, the largest penalty of its kind in Massachusetts history—Bain was long gone having sold the company in 1993 to Corning, Inc.
The right man to fix the economy, huh? Now, don’t get me wrong, I honestly believe that Romney has a solid grasp on economic issues and business management. However, is it wise to entrust our economy to a man who still has a substantial financial interest in a company that profits when other companies are struggling? A company that has a record of defrauding the government already?
It is also worthy to note that while the company eventually went bankrupt, with thousands losing their jobs, Bain Capital walked away with a $12 million profit—a little over $400,000 of that money ending up in Mitt’s pocket.